Mobile advertising to account for 4.4% of total global ad spend by 2017
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Mobile advertising to account for 4.4% of total global ad spend by 2017

According to new data from Research and Markets (www.researchandmarkets.com), the total value of the global mobile marketing and advertising market will grow from 3.8 billion in 2011 at a compound annual growth rate (CAGR) of 31% to 19.7 billion in 2017.

This will then correspond to 15.5% of the total online advertising market or 4.4 percent of the total global ad spend for all media, notes the research group. As the digital convergence blurs the differences between devices, the definition used for mobile advertising is that it comprises the digital ads exposed on a mobile handset screen.

Consumers are currently devoting a quarter of their media consumption time on mobile devices, yet the channel only attracts slightly more than 1% of the ad dollars, says Rickard Andersson, telecom analyst, Research and Markets.

While the transition of advertising expenditure from traditional media to digital channels has not kept up with the changes in consumer behavior, the direction of the development is clear. The unique targeting possibilities and new creative ad units suitable for mobile devices will spur mobile ad spend to increase severalfold in the medium-term, says Andersson. He adds that advertisers are keen on exploring opportunities with real-time bidding enabling automation in the ad buying process.

The mobile marketing value chain is still developing and there are a large number of players dedicated to different activities related to mobile advertising, according to Research and Markets. Since the value chain is fragmented and the industry has not yet reached maturity, many different roles are involved.

The major mobile OS providers, Apple and Google, already hold major market shares offering their AdMob and iAd platforms. Microsoft and Yahoo! are also in fierce competition over market shares in the mobile advertising space. Facebook has moreover made a first inroad into the mobile ad market and may surface as an important player if combining advanced user targeting with innovative mobile ad formats. There is further a wide range of specialized mobile actors. Examples include the major independent ad networks Millennial Media and InMobi, the ad exchange Smaato and the operator-centric advertising solution provider Amobee which is now part of Singtel.

The mobile advertising industry continues to demonstrate a high level of acquisition activity and further consolidation is expected to bring about an ecosystem consisting of a few dominant digital advertising networks spanning all types of devices, notes Research and Markets.

 

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